Bank of Canada warns low inflation to persist well into 2016
OTTAWA — The Globe and Mail
The Bank of Canada is warning that unusually low inflation pressures will persist well into 2016 – a new forecast that could further delay future interest rate hikes and send the Canadian dollar lower.
The currency plunged after the announcement, sinking to 90.3 cents U.S. by late morning.
The central bank kept its key overnight interest rate unchanged at 1 per cent Wednesday, or where it’s been since September 2010.